How Nordstrom Monitors Shoppers Through WiFi

Tracking Your Every Move: The Nordstrom Experiment

(P.S. Update at the bottom: Nordstrom decided that eavesdropping was overrated.)

Are people actually okay with sacrificing their last shreds of privacy to help retailers rake in even more money? Enter Nordstrom’s flashy partnership with Euclid—a charming little service that tracks your in-store jaunts through good ol’ Wi-Fi, all from your smartphone. Ah, but fear not! Nordstrom assures us it’s all “anonymous.” Because quemore else would want to store your shoe sizes, shopping habits, and snack preferences?

In a plot twist that will leave you gasping, Nordstrom is one of the 100 Euclid customers reported by the New York Times, having “tracked” a staggering 50 million devices across 4,000 locations. Who knew shopping could involve less buying and more spying?

The upscale retailer is using Euclid’s tech in 17 stores because who doesn’t love a good Wi-Fi-induced stalking? According to their spokesperson, Tara Darrow, sensors collect data on which departments you linger in and how long you play hide-and-seek with the fitting room. Of course, these sensors do not follow you from department to department. How comforting!

Darrow claims this “anonymous” data allows Nordstrom to enhance the customer experience. Apparently, knowing when to throw more staff into the chaos of high-traffic times or rearranging that expensive shoe display will lead to better service. Because, surely, what every shopper craves is a personal assistant that knows their shopping patterns better than their family does.

The fun began back in October 2012, with Nordstrom placating worried consumers by posting signs that indicated opting out was as easy as turning off your phone. Like Home Depot, who casually dabbled with this technology only to realize it was just plain creepy, they backed out. Weren’t you watching, Home Depot? The whole

“tracking your customers” thing was an integral part of your sales strategy, right?

During interviews with Euclid’s founder, Will Smith—no, not that Will Smith—a Stanford grad and retail heir, I discovered that Euclid’s growth went from 1 million device events per day to a mind-blowing 3 billion daily. Apparently, it’s not about revenue; it’s about eavesdropping on how many times you decide to peer into the frozen yogurt aisle.

So how does Euclid boost retailers’ pockets aside from peeking at your sales habits? It tracks foot traffic. First off, it measures how many customers stroll past the store window—because what more could you want from a window display? The promise of higher revenues if you can lure someone inside without them realizing it? Second, the length of time you spend inside correlates directly to how much you might be willing to buy. More time equals more spending—a horrifyingly genius conundrum.

In January, the plot thickened when hedge funds were clamoring for the names of publicly-traded customers linked to Euclid, presumably so they could buy up stocks like hawks on a squirrel hunt. If Nordstrom’s tracking of customer movements wasn’t unsettling enough already, now your favorite retailer may be complicit in making hedge funds richer, one Wi-Fi connection at a time. So, unless you fancy contributing to Wall Street’s latest scheme, turning off your phone might be your best bet while schmoozing in the aisles.

But wait—here’s the kicker! Just as you were getting comfortable with the idea of being tracked, a little update came through at 4:21 PM ET: Nordstrom is no longer using Euclid. Yes, that’s right! Their “testing phase” has concluded. Be quiet, everyone. They learned heaps and have declared an end to the surveillance extravaganza. But fear not! They promise they’ll keep experimenting with other ways to get to know your shopping habits—because nothing says “thank you for shopping” like stalking you from afar.